Authors: Tatsuyoshi Masuda
Addresses: Department of Economics, Hokusei Gakuen University, Atsubetu ku, Sapporo 004-0042, Japan
Abstract: The purpose of this paper is to identify those factors related to success probability of new Japanese founders, focusing on their human resource management practices. The empirical results using a sample of 1,014 new founders suggest that new founders, who recruit previous co-workers and raise the morale by the merit-based pay system, have higher success probability. Venture business implementations are an essential engine to grow the new founders. Another notable finding shows that low success probability is revealed for the older founders, despite the fact that they recruit previous co-workers and have previous management experience.
Keywords: human resource management; HRM; employee recruitment; morale; merit-based pay systems; MBPS; previous management experience; MAEX; Japan; new ventures; start-ups; entrepreneurship; small firms; small business.
International Journal of Entrepreneurship and Small Business, 2011 Vol.13 No.4, pp.445 - 468
Published online: 07 Aug 2011 *Full-text access for editors Access for subscribers Purchase this article Comment on this article